British logistics firm Wincanton withdrew its support for CEVA's proposed deal, in favour of GXO Logistics' higher offer, which valued the company at about £762 million (€891.54 million).
Wincanton directors are pleased that the public offer process, triggered by their recommendation of CEVA Bidco's offer on 19 January 2024, is maximising value and delivering a significant premium to Wincanton shareholders, the company said in a statement.
GXO had offered to buy Wincanton for 605 pence per share, compared with CEVA's 'increased and final' bid of about 480 pence apiece tabled on Monday (26 February).
GXO said its bid underscores its interest to expand into the UK's aerospace, utilities, industrial and healthcare sectors, with Wincanton able to give it a 'springboard' to offer industrial services across Europe.
Supply Chain Solutions
Wincanton operates in the UK and Ireland and offers supply chain solutions to businesses across sectors. It counts IKEA, Primark and BAE Systems among its customers.
CEVA, a unit of French shipping firm CMA CGM, said that it would consider its options after GXO outbid it.
CEVA had first proposed to buy Wincanton for 450 pence a share in January, before it raised its offer on Monday.
Including debt, GXO's offer valued Wincanton at about £960 million (€1.1 billion).
"The board of Wincanton is pleased that GXO recognises the very significant value inherent in this business and intends to recommend the offer to shareholders for their consideration," Wincanton chairperson Martin Read said in a statement.
He added, "We have long been clear that Wincanton is a great business with a compelling strategy, strong customer relationships and excellent people.
"Under the current management team, we have made positive progress and ensured that Wincanton is at the forefront of logistics innovation."
News by Reuters, additional reporting by ESM.
